FMC allows G6 agreement in Asia-U.S. East Coast

Friday, March 15, 2013

The Federal Maritime Commission will allow the G6 Alliance of container liner shipping companies to operate between Asia and the U.S. East Coast.
The alliance currently operates on the Asia-Europe trade lane.
On Feb. 1, G6, which is a combination of members of the New World Alliance - APL, Hyundai, and MOL, and the Grand Alliance - Hapag-Lloyd, NYK, and OOCL, filed an agreement with the FMC that would allow them to charter and exchange space on each other's vessels and coordinate and cooperate with respect to transportation services and operations. It does not include services between Asia and the U.S. West Coast.
Commissioner William P. Doyle said in a statement posted on the FMC Website that the commissioners voted this week to allow the new agreement to go into effect.
Doyle noted the G6 Alliance will deploy more than 50 ships in the transpacific trade, with three strings through the Panama Canal and three through the Suez Canal, and is scheduled to begin operations in May.
He said services will "call at almost 30 ports in Asia, North America east coast,
Canada, Central America, Caribbean, Indian subcontinent, Mediterranean, and the Middle East."
Doyle said the agreement will retain U.S.-flag vessels in the rotation and increase the frequency of vessel port calls on the U.S. East Coast. Six U.S.-flag vessels from APL are expected to enter the service.
"The six loops are the result of the merger and revision of several existing services separately offered by the two alliances," Doyle said. "Sailing frequency at most U.S. East Coast ports will increase compared to what is currently offered by the New World Alliance and the Grand Alliance. Accordingly, the increase in port calls will have a positive impact on jobs – both in terms of retention and growth."
The commission will also closely monitor the G6's activities by establishing a "special purpose monitoring program aimed at early detection of capacity coordination among carriers and agreements operating in the market," Doyle said. - Chris Dupin